NEW YORK (Reuters) - Microsoft IS close to buying internet telephony network Skype in $ 8.5 one billion year deal, a source familiar Said With The situation, as it Seeks to Regain Ground On Growing Such rivals as Google.

Microsoft&&9;s interest in The Loss-making to popular Skype, Which Has 145 million users are average EACH month and has Gained Favor Among small business users, highlights a Need to Gain New Customers and platforms for Windows and Office software icts.

Skype Which allow people to make calls at no charge to premium services has aussi Developed, Would Give Microsoft foothold In The Potentially lucrative video-conferencing market to shift Businesses have lower-cost Ways of communicating.

This Could Be Integrated Into Microsoft software Such as Outlook to appeal to corporate users, while The Voice and video communications "could link to Microsoft&&9;s Xbox Live gaming.

Longer-term, web-based Skype offer Microsoft Would Another route to Develop icts mobile presence, it has Already area year could more Energy and Resources Into PC use as edible Under Threat.

This exchange starkly illustrated last year WAS When Apple&&9;s portfolio of coveted consumer goods propelled it past Microsoft to Become The World&&9;s Most Valuable Technology Company. The maker of iPhones and sincere iPads has beens named As The Most Valuable brand too, Overtaking Google.

The Skype deal - Which Would Be The Biggest In The 36-year history of the World&&9;s Largest Software Company - is Expected to be announced as early as Tuesday morning, The Source Told Reuters. Microsoft and Luxembourg-based Skype declined, how.

The mooted $ 8.5 one billion price tag, Including debt, Was a surprise.Although The Sum Would not stretch cash-rich Microsoft, Some Said It Was high for a company has changed ownership Whose SEVERAL times Düring icts Relatively short life.

"In this atmosphere of Internet Bubble 2.0, picking up unprofitable year for online company Roughly 10 times dirty Probably Seems downright cheap," Shanghai-based Michael Clendenin, a managing director of consulting firm Redtech Advisors, said.

"Aim if you are considering (it) Was Just Valued at about $ 2.5 one billion 18 months ago When a chunk WAS sold off, Then $ 8.5 one billion Seems Generous and Means Microsoft has a high wall to climb to Prove to investors That Skype Is A Necessary linchpin for The Company&&9;s online and mobile strategy, "he Added.

Would the deal price active Skype user at $ 59, Compared With A price of $ 140 per user Paid In The Latest Facebook investment.Some 8.8 million Paying Customers Used to make Skype calls in The Fourth Quarter to traditional phones at low rates.

"The big unanswered question Is How do work-for-assets Skype Micrososft, They Already have instant messaging, IP telephony ... how do you justify The Price?" Ben Wood, head of research firm CCS Insight, said.

Skype Which delayed plans for initial public offering year Expected To Raise $ 1 trillion, has-been looking at Other Options, Including tie-ups with Facebook and Google.Such a deal valuing Skype WAS&&9;ve seen at $ 3 Billion to $ 4 trillion.

STOCK LANQUISHING

Despite doubling sales and profit in The Last Eight Years, Microsoft&&9;s stock has languished Largely, as investors worry about STIs Ability to counter new rivals gold suited to New Ways of Computing, The Threat Posed by Especially new mobile devices paydayloans.

Microsoft has countered With A new version of STI mobile software - Which Will Power The Next Generation of Nokia smartphones - am and is Developing a New Operating System That Will Work on low-power tablet PCs.

Goal online video chat Weakness Remains. Although The Company has Already icts video in Windows Live Messenger Service, It Is not available on ITS Windows 7 Phone software.

Skype aussi Makes Its Own Versions of service for use on iPhone and iPad, Research in Motion&&9;s BlackBerry and Android phones. It Can not Be Used on Microsoft phones.

FaceTime Apple&&9;s video calling service - available on ITS latest iPhone and Mac computers - a has-been hit. Recently Google follows Followed by Adding video to popular Google Talk application icts for smartphones running Android on ITS system.

CASH PILE

Despite Being Most Expensive icts to date, the deal Would Still Be Relatively Small for Microsoft, Which has $ 50 billion in cash and short-term Investments are icts balance sheet. The price Would Likely include $ 686 million in long-term debt.

"I think The Price is Quite reasonable," Said Sean Lee, a Taipei-based manager of the Global Top Dividend Fund at Shinkong Investment Trust, Which Owns Microsoft shares.

Skype Which WAS Formed in 2003, WAS Bought by eBay Inc in 2005 for $ 3.1 trillion. Last year it HAD in $ 860 million back in goal made a net loss of $ 7 million, According to data in icts initial public offering filing.

In 2009, eBay sold a stake in Skype majorité year to Investor Group Including Silver Lake, The Canada Pension Plan Investment Board Andreessen and Horowitz for $ 1.9 billion in cash and a $ 125 million note. EBay has about Retained Third.

Goal 8.1 million Were Paying Customers, using Skype to make calls to traditional phones at low rates.

A Deal Would Exceed the $ 6 Billion Microsoft Paid for online ad agency aQuantive in 2007, Which Was Not a success.

Microsoft Shareholders are Relieved icts $ 47.5 for one billion offer Yahoo Inc. in 2008 WAS rebuffed, Paving the Way for a web-search agreement Which Gives Microsoft Most of What it wanted anyway. Have Yahoo shares halved in value.

Microsoft&&9;s Most high profile internet buy Was The $ 240 million for a 1.6 percent Paid share in Facebook in 2007. It est aussi plowing money Into icts MSN Internet portal and search engine Bing, racking up $ 7 billion in Losses over Four Years.

Technology Sector Mergers and Acquisitions Have sincere spiked last summer, driven by Increased confidence in the Economy and Companies Facing Pressure To Spend mountains of cash. Global deal volume year to date Is Up 55 Percent When Compared With The Same Period in 2010, recent figures from Thomson Reuters show.

Goldman Sachs and JPMorgan are Advising Skype, The sources said, while Microsoft is Not using advisers.

(Additional reporting by Megan Davies and Bill Rigby, Sakthi Prasad in Bangalore, Jim Clare in Taipei and Melanie Lee in Singapore; Tarmo Virk in Helsinki and Nicola Leske in Frankfurt; Writing by Alexander Smith, Editing by Louise Heavens)

Microsoft nears one billion $ 8.5 buy-in Skype Web Shift